The ‘Jock Tax’ May Soon Hit More High-Paid Professionals

Thursday, February 13th, 2003

I may have to avoid making any money in California. The ‘Jock Tax’ May Soon Hit More High-Paid Professionals explains:

Shortly after Mr. Jordan’s stellar performance with the Chicago Bulls against the Los Angeles Lakers in the 1991 National Basketball Association championship, California started aggressively enforcing an existing law that required non-residents to pay state income tax on income earned while in the state. The biggest targets of this enforcement have been highly compensated professional athletes and entertainers who aren’t California residents — after all, revenue-department officials can see when Mr. Jordan or Jon Bon Jovi was in town just by looking in the newspaper.

Over the last decade, 20 states — most of them home to professional sporting and major entertainment venues — have adopted similar jock taxes, according to the Tax Foundation, a nonpartisan tax-education and research group based in Washington, D.C.

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